The conventional wisdom that used cars are always a better deal than new cars may not hold true right now. DailyFinance reports that used car prices are at 16-year highs: a great time to sell your car, and more reason to compare used vs. new car prices if you're looking to buy.

Several factors are making used car lots a little emptier than previously, including people holding onto their cars for about a year longer and lower new car sales for the last few years, making fewer late-model used cars available on the market.

Although all used cars are priced higher these days, if you have a small car or hybrid, you're especially in luck:

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For every $1 increase in the price per gallon of gas, the value of used compact cars rises 8% to 12% on average according to the Automotive Lease Group. That means that for a small used vehicle that was worth $10,000 last year, the equivalent car today is worth roughly $11,000.

DailyFinance suggests, then, that if you have a small, fuel-efficient car, you'll get top dollar for selling or trading it before used car prices level off or drop next year.

If you're in the market to buy a used or a new car, J.D. Roth over at Get Rich Slowly says buying a new car may be a smart choice, especially if you will be driving the car for many years. With used car prices so high, it's wise to do your research on which used cars are best and compare the prices to a new car purchse (see the Get Rich Slowly site for advice on conducting your research).